Calculators
CGT reform calculator
Compare capital gains tax on an investment property under the existing 50% discount and the proposed post-July 2027 model of inflation indexation plus a 30% minimum tax.
Proposed rules, illustrative only.
Existing asset sale (pre-July 2027)
An investment property sold before reform commencement stays under the existing 50% discount framework.
Example taxable gain after the 50% discount
$117,500
This is a simplified example of the taxable amount, not a full tax return result.
Total cost base
$685,000
Nominal gain
$235,000
Taxable gain after the 50% discount
$117,500
How the taxable gain is worked out
max(0, $235,000 × 50.0%)
The whole gain is halved, whether it came from real growth or from inflation.
The two models this calculator compares
Existing model. For assets sold before 1 July 2027, the examples keep the existing 50% CGT discount treatment for eligible holdings.
Proposed post-reform model. For later gains, the examples show nominal gain reduced by inflation and then apply the requested 30% minimum-tax illustration.
Which scenario applies to you
Existing asset sale (pre-July 2027). An investment property sold before reform commencement stays under the existing 50% discount framework.
Asset held across the reform date. A property held before the May 2026 announcement and sold after July 2027 is split into pre-reform and post-reform value movement.
New investment (post-July 2027). A rental property acquired after reform commencement cannot use the standard 50% discount in this simplified example.
New residential housing carve-out. Eligible new builds can be compared under both the legacy 50% discount example and the post-reform indexation model.
Edge cases worth checking
No real gain after inflation. If inflation absorbs the post-reform nominal gain, the indexed gain is floored at zero in this example.
Held for 12 months or less. The 50% CGT discount only applies when the sale happens more than twelve months after acquisition, so a quick resale keeps the full nominal gain taxable.
Capital loss or zero gain. If sale proceeds do not exceed the relevant cost base, the tool shows no taxable gain and highlights the loss or nil outcome.
Ineligible or out-of-scope property. Trust structures, joint ownership, foreign residency issues, and non-eligible housing are outside this simplified tool.
Assumption-heavy valuations. The cross-reform example depends on an assumed market value at 1 July 2027, which can materially change the split outcome.
What is the proposed Australian CGT reform for property?
The scenarios on this page contrast the current capital gains tax treatment — where eligible individuals can apply a 50% CGT discount on assets held longer than twelve months — with a proposed post-reform framing that removes the flat discount, reduces the nominal gain by inflation (indexation), and then applies a 30% minimum-tax illustration. The examples are general and rely on the numbers you enter, not on any final legislation.
When would the CGT reform start?
These examples use a reform commencement of 1 July 2027. Sales before that date are shown under the existing 50% discount model, while gains accruing on or after it are shown under the proposed indexation-plus-minimum-tax model. An asset held across the date is split into a pre-reform portion and a post-reform portion, using an estimated market value at 1 July 2027.
How does the indexation method differ from the 50% CGT discount?
The 50% discount simply halves your nominal capital gain before tax, regardless of how much of that gain is real growth versus inflation. The indexation method instead subtracts an inflation adjustment from the nominal gain, so only the real (above-inflation) gain is taxed. When inflation is high relative to the gain, indexation can leave little or no taxable gain; when inflation is low, the older 50% discount is often more generous.
Do I get the 50% CGT discount if I hold the property less than 12 months?
No. The 50% CGT discount is only available to eligible individuals when the CGT event happens more than 12 months after you acquire the asset, so selling within the first year leaves the whole nominal gain taxable. This calculator applies that rule automatically: enter a purchase and sale date less than twelve months apart and the discount is switched off, with the full nominal gain carried through as the taxable amount. Buying and selling on the same day of the year does not qualify either — you need more than twelve months between the two dates.
How is the inflation adjustment calculated in this tool?
You enter a single cumulative inflation figure covering the whole holding period, expressed as a percentage. The calculator multiplies that percentage by the relevant cost base — the total cost base for a property bought after the reform, or the estimated 1 July 2027 value for a property held across the reform date — and subtracts the result from the nominal gain. The indexed gain is floored at zero, so a property whose growth only kept pace with inflation shows no taxable gain in the example.
Are new residential builds treated differently under the reform?
The examples include a new residential housing carve-out that lets you compare an eligible new build under both the legacy 50% discount model and the post-reform indexation model side by side, using the same figures. The carve-out comparison only appears once you confirm the property is an eligible new build. It is intended to illustrate the policy flexibility discussed for new housing supply, not to determine eligibility.
What happens if I sell at a loss?
If the sale proceeds do not exceed the relevant cost base, the calculator reports a capital loss and shows no taxable gain rather than a negative figure. Real capital loss treatment is more involved: losses are generally offset against other capital gains in the same year, and any unused amount is carried forward. This tool looks at one property in isolation, so it cannot show that interaction.
Is this CGT reform tool tax or financial advice?
No. This page is for self-study and education only. The scenarios use simplified assumptions and the values you enter, and they ignore many real-world factors such as trust or joint ownership, foreign residency, capital losses from other assets, main residence exemptions, and the final form of any legislation. Check the enacted rules and consult a licensed accountant or adviser for your own situation.
One conversation, no pressure.
Tell us what you are planning. We will map out your options and explain what they mean for you.
Talk to us